B Mirror Report: Bangladesh’s cement sector experienced a modest recovery in 2025 after witnessing a continuous decline for the previous three years from 2022 to 2024, industry sources said.

Around 40 million tonnes of cement were sold in 2025, reflecting nearly a 5 percent increase compared to 2024, when total sales were slightly below 38 million tonnes.

Data from the industry show that cement sales were close to 39 million tonnes in 2021. Since then, the sector recorded marginal negative growth each year, with sales remaining just above 38 million tonnes in 2022 and 2023 before falling below that level in 2024.

Sector insiders say that private-sector-led rural infrastructure development has been a major factor behind the recent growth, even though the implementation of mega projects and new large investments slowed down during the period.

Bangladesh Cement Manufacturers Association (BCMA) President Mohammed Amirul Haque said the sector had been under pressure due to weak demand amid economic slowdown and political uncertainty before showing signs of improvement last year.

“When discussions over holding the national election started last year, people regained confidence that an elected government would be more accountable,” said Amirul Haque, who is also the Managing Director of Premier Cement Mills.

He noted that construction activities gradually resumed as public confidence improved, which contributed to the rise in cement demand.

Although large-scale projects have not been progressing at full pace, rural infrastructure development has remained strong in recent years, helping sustain demand for construction materials.

According to him, many rural households are now opting for concrete buildings instead of traditional structures, often with financial support from family members working abroad.

He expressed optimism that the newly elected government would create a more favourable business environment, encouraging increased infrastructure development.

“We are hopeful the sector will continue to recover. Demand is already improving and may rise further in the coming months, especially during April and May,” he said.

However, he also raised concerns about the ongoing Middle East conflict, which could affect the overall economy through possible disruptions in energy supply.

Despite last year’s growth, industry sources said cement factories are still operating far below their installed production capacity of about 86 million tonnes annually.

Currently, around 40 cement companies, including seven listed firms, operate in the country. The sector provides direct employment to about 60,000 people, while indirect employment exceeds one million.

Bangladesh’s per capita cement consumption stood at around 223 kilograms in 2025, significantly lower than the global average of nearly 600 kilograms.

Industry operators say the significant gap between installed capacity and actual demand reflects the difficult business environment the sector has faced in recent years.

They also pointed out that the industry bears a heavy tax burden on raw material imports and earnings.

Bangladesh relies entirely on imported raw materials such as clinker, slag, limestone, fly ash and gypsum for cement production, making the sector vulnerable to fluctuations in global commodity prices and freight costs.